What is this?? In interpreting the standardized unexpected earnings momentum measure, it can be concluded that a given size forecast error is: A) less meaningful the smaller the historical size of forecast errors. B) scaled by the earnings surprise. C) more meaningful the larger the historical size of forecast errors. D) more meaningful the smaller the historical size of forecast errors.
no idea but i’ll take D.
B? Standardized by sd so historical size shouldn’t make the number more or less meaningful T/G
D.
D is the correct ans - could someone explain/elaborate on what option D means in plain good-old English terms?
I would have picked D too you have to look from momentum perspective. if you have low historical and then higher error today you can try to anticipate a trend therefore higher and higher impact my 2 cents
dinesh.sundrani Wrote: ------------------------------------------------------- > D is the correct ans - could someone > explain/elaborate on what option D means in plain > good-old English terms? No, I wish I could. I remembered this for some reason, but can’t even remember what section it comes from…
dinesh, the earning momentum metric is a methodology of determining a companies earnings surprises and how often and big they are. The forecast error is when an analyst misses the surprise by a certain margin.
^ makes sense good to know
Thanks rekooh !